Climate change: COP28 okays $475 mn loss and damage fund

Dubai: On the opening day of the United Nations Framework Convention on Climate Change, or COP28, the UAE has greenlit a crucial decision, making the loss and damage fund for developing nations operational. The European Union committed around $275 million, while the host, UAE, pledged an additional $100 million. Germany and the UK pledged $100 million and $75 million, respectively. The US will contribute $17.5 million and Japan has committed $10 million for the climate disaster fund. India welcomed the decision. “India strongly supports the operationalisation of the loss and damage fund. It is a landmark decision,”said environment minister Bhupender Yadav, who represented India at the meeting.

Earlier in the day, the International Monetary Fund’s managing director Kristalina Georgieva, said in an interview: “There has been progress in getting money for the loss and damage fund. It’s coming. How much, depends on the negotiations. However, it must not be less than $200 million.”

The fund was set up during COP27 at Sharm el-Shaikh in Egypt last year. The fund, a long-pending demand of developing economies will give financial assistance to countries recovering from climate disasters such as extreme weather events. It will also be used to deal with other climate-related emergencies such as sea-level rise, migration, and displacement.

During COP27, however, none had committed money for the fund. That said many aspects of the fund are yet to be finalized. At Sharm el-Shaikh, a transitional committee was set up to work on the details and submit its recommendations. It met several times throughout the year and made several recommendations.

UAE, the host of COP28, decided to deal with it right at the start, and convinced advanced economies to accept the panel’s recommendations. “Today’s news on the loss and damage gives this UN climate conference a running start on governments, and their negotiators must use this as a mentor to deliver truly ambitious outcomes here in Dubai,” Simon Stiell, executive secretary, UNFCCC, said. COP28 president and UAE’s minister for industry and advanced technology Al Jaber said: “I am more confident than ever that we will deliver an unprecedented result.”